Last Monday, October 12, some of our members sold covered calls on Novavax (NVAX), strike price $113, expiry date today, October 16. (NVAX C 16OCT20 113.00) They received a premium income of $2.65 per share.
During the week, NVAX dropped to $111.42, so they lost $1.58 per share on the underlying. Subtracting that loss from the premium income of $2.65 per share received, our members gained $1.07 per share. ($2.65 minus $1.58 ) They could have done even better, much better! Something like that is possible anytime that the underlying security drops in price. It could still be done today. Here is how.